Oil sales up by 32% YoY in April’22, highest since May’18

May 09, 2022 (MLN): The total sales of Oil and Marketing Companies (OMCs) witnessed an increase of 32% YoY to an almost 4-years high of 2.21 million tons during April 2022.

This takes 10MFY22 sales to 18.48mn tons, up by 17% YoY. The healthy economic activities, increased demand from IPPs, and wheat harvesting remained major drivers behind such robust growth, a research report by Ismail Iqbal Securities said.

It’s pertinent to mention here that Pakistan’s (Ex-WAPDA Discos) RFO-based electricity generation during 9MFY22 increased by 112% YoY to stand at 8,836 Gwh, it added.

On a sequential basis, petroleum product sales in the country jumped by 21% thanks to an increase in HSD and RFO sales. HSD sales saw a significant uptick of 33% to 0.92mn tons due to wheat harvesting season and inventory buildup by the IPPs while RFO sales witnessed a sharp increase of 62% MoM to 0.46mn tons as low hydel generation and some plants outages have increased reliance on RFO generation during the month.

Mogas sales (petrol) remained flat during the month and recorded at 0.77mn tons.

Company-wise analysis showed that Pakistan State Oil (PSO) led the volumetric growth chart as its sales grew by 29% MoM/ 58% YoY to clock in at 1.23mn tons. This was primarily due to major growth in FO sales (+314% YoY) followed by HSD (+40% YoY).

This is followed by APL and SHEL with a growth of 28% and 16% YoY to 0.173mn tons and 0.156mn tons, respectively. On the other hand, HASCOL posted negative growth of 72% YoY in the month of April 2022.

With regards to market share, PSO secured the largest market share of 51% in the month of April 2022 from 46% in the same month last year, largely due to a higher share in the FO market. While APL’s overall share inched up to 8%. On the other hand, SHEL’s market share remained at 9% during April 2022.

Going forward, a report by Topline Securities believes that higher car/bike sales and rising oil prices will continue to drive OMC sales and profitability of the sector however increasing circular debt and rising Price Differential Claim (PDC) remains key risks for the sector.

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